Correlation Between Enel Chile and Banco Santander
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By analyzing existing cross correlation between Enel Chile SA and Banco Santander Chile, you can compare the effects of market volatilities on Enel Chile and Banco Santander and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Enel Chile with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Chile and Banco Santander.
Diversification Opportunities for Enel Chile and Banco Santander
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enel and Banco is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Enel Chile SA and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and Enel Chile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Enel Chile SA are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Chile has no effect on the direction of Enel Chile i.e., Enel Chile and Banco Santander go up and down completely randomly.
Pair Corralation between Enel Chile and Banco Santander
Assuming the 90 days trading horizon Enel Chile SA is expected to generate 1.54 times more return on investment than Banco Santander. However, Enel Chile is 1.54 times more volatile than Banco Santander Chile. It trades about 0.13 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.07 per unit of risk. If you would invest 5,500 in Enel Chile SA on September 20, 2024 and sell it today you would earn a total of 210.00 from holding Enel Chile SA or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Enel Chile SA vs. Banco Santander Chile
Performance |
| Timeline |
| Enel Chile SA |
| Banco Santander Chile |
Enel Chile and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Chile and Banco Santander
The main advantage of trading using opposite Enel Chile and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Chile position performs unexpectedly, Banco Santander can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banco Santander will offset losses from the drop in Banco Santander's long position.| Enel Chile vs. Embotelladora Andina SA | Enel Chile vs. Administradora Americana de | Enel Chile vs. Las Condes | Enel Chile vs. Salfacorp |
| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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